Communiqué

Communiqué Issued At The 9th Monthly Meeting With Operators of The Power Sector At Sokoto Independent Power Project, Gidan Salanke Road, Sokoto State

Oct 10, 2016 - The Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola (SAN) chaired the ninth monthly meeting of operators in the electricity industry and was hosted by the Kaduna Electricity Distribution Company.

The meeting focused on identifying, discussing and finding practical solutions to critical issues facing the Nigerian Electricity Supply Industry.

The operators were fully represented at the highest executive management levels, including Managing Directors and CEOs of Generating Companies (GenCos), Distribution Companies (DisCos), and the Transmission Company of Nigeria (TCN), as well as various government agencies such as the Niger Delta Power Holding Company (NDPHC), the Nigerian Bulk Electricity Trader (NBET), the Nigerian Electricity Regulatory Commission (NERC), Nigerian Electricity Liability Management Company (NELMCO) and Nigerian Electricity Management Services Agency (NEMSA) responsible for the regulation and development of the electricity industry.

The meeting deliberated and resolved as follows:

i. Acknowledged the progress in delivering incremental power. Current reports indicated 3500MWh/h delivered by the national grid which represents a steady improvement over the past few months. The meeting noted that a recent performance report on the power sector reported an average of 3,166MW of power currently unavailable due to gas shortages caused by pipeline vandalism. The meeting also noted that the remaining vandalised gas pipelines will shortly be repaired.

ii. Acknowledged improvements in response rates by Distribution Companies to customer complaints, notably resolving issues in Udu community in Delta State (Benin DisCo), Rainbow College Ota (Ibadan DisCo) and other locations in other Distribution Companies around the country. The meeting expressed anticipation of continued improvements in dispute resolution procedure with customers.

iii. Recognized the need for the transmission system and the distribution companies to ensure all incremental power added to national grid can be evacuated by the grid and delivered to customers.

iv. Recognized the liquidity problem facing the industry is multidimensional and is central to the survival, growth and sustainability of the industry. Solving the issues requires more intensive and extensive metering, and payment of MDA bills. The Government and the industry are devising far reaching measures to solve the problem and put the industry on a robust and sustainable foundation.

v. The meeting explained steps being taken to address the liquidity problem by government, through previous approvals and payments, recognizing that billing and payment are continuing occurrences in the business. The meeting was briefed about the plans of government to verify MDA debts by requesting DisCos to submit details of customers, while charging DisCos to reduce their own losses by increasing metering and also by furnishing their audited accounts.

vi. TCN also briefed the meeting about steps being taken to resolve interface issues that improve service to DisCos and the progress of transmission grid expansion programmes in places like Maiduguri, Damaturu, Mayo Balewa and Damboa which fall within the remit of the last host of the meeting, Yola DisCo, and the expansion projects ongoing in Sokoto, Kaduna, Zaria, Funtua, and Gusau within the territory of Kaduna DisCo, the hosts for the current meeting.

vii. The meeting noted the following update on metering roll out committed to by the meeting and expressed anticipation on further improvements in metering:

 

Disco

TARGET
Jun-2016

TARGET
Dec-2016

Actual
Oct -2016

Estimated Penetration @ DEC 2016

 

QTY

QTY

QTY

(%)

EKO

90,000

150,000

19,151

65%

IKEJA

120,000

220,000

60,100

40%

KANO

40,000

100,000

7,000

35%

YOLA

30,000

75,000

5,000

45%

JOS

45,000

120,000

11,000

33%

BENIN

18,000

36,000

  38,585

65%

P/HARCOURT

75,000

150,000

    9,297

60%



viii. NERC informed the meeting that Port Harcourt has been sanctioned, and Benin, Kano and Enugu Distribution Companies would be sanctioned for not complying with sector directives regarding submission of audited accounts. NERC consequently directed that DisCos will be required to submit financial statements of their companies in accordance with the provision of their licenses.

ix. NDPHC announced the completion of Alaoji to Ikot Ekpene 330kv DC line, as well as Calabar to Ikot Ekpene 330kv DC line, following the resolution of community issues in Itu and Oronta. Following the quality assessment by NEMSA, this line will be energized. Ikot Ekpene switching station is expected to be commissioned at the end of October. These transmission projects are critical to improvements in grid reliability in the country.

x. NNPC informed the meeting of a promising outlook on gas by the end of the third quarter of 2016. The strategy for gas supply improvement involve restoring previous supply level by completing repairs of ELPS 24" pipeline by mid-November 2016, and incremental supply through new supply additions from the following projects: NPDC Oredo 2, Utorogu NAG2, Odidi, Giga gas and TEPNG.